Jinchuan to retain stake in Allegiance

March 11,2008

 

 

Reuters reported that Jinchuan Group Ltd, the largest shareholder in Allegiance Mining NL, which is being taken over by Zinifex Ltd, plans to retain its interest and it examining the implications of Zinifex's own takeover by Oxiana Ltd.

 

Mr Yang Zhiqiang vice chairman of Jinchuan told the news agency in Beijing "For the time being we are not selling, we want to hold on and see how things develop", adding that he was waiting to see the outcome of the planned Zinifex and Oxiana merger.

 

Mr Tony Howland-Rose chairman of Allegiance told AAP that Jinchuan may be happy to become a minority shareholder in a merged Oxiana and Zinifex because it will open up opportunities with a range of metals markets. He said "There have been some very sharp changes in the past few months and I suppose they are taking time to evaluate that.”

 

Mr Howland-Rose said "They are always very cautious people and will do what they judge to be in their best interest in due course, they've got the off-take and both parties will benefit from that, they have concepts of becoming much larger in a broader range of metals. They've been good partners to date and will continue to be for Allegiance in its new form. I think it will work out quite well."

 

Allegiance has recommended an AUD 852.4 million offer comprising AUD 1.10 per share from Zinifex to its shareholders. Zinc producer Zinifex, meanwhile, is being taken over by gold and copper miner Oxiana, under an AUD 6.2 billion deal.

 

Jinchuan has off take agreements for all nickel produced by Allegiance assets.

 

 

(From: http://steelguru.com/)

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